Thursday, 01 April 2021 16:08

New Vehicle Inventory Continued to Dwindle in March: Edmunds


...a bigger financial hit for automakers, and the Detroit Three are likely the most affected."


In spite of these shortages, Edmunds analysts note affluent consumers have continued to drive a significant portion of financed purchases throughout the first quarter of the year, as indicated by increases in average down payments and the average amount financed for both new and used vehicle purchases.


According to Edmunds data, the average down payment for new and used financed vehicle purchases is expected to climb to $4,729 and $3,345, respectively, in Q1 compared to $4,246 and $2,679 a year ago. The average amount financed for new and used vehicles is expected to climb to $35,040 and $23,958, respectively, in Q1 compared to $33,594 and $22,200 a year ago.


"So far, automakers have been able to comfortably count on financially stable consumers focusing their spending on bigger-ticket vehicle purchases during the pandemic," said Caldwell. "But as vaccines continue to roll out and consumers crave new experiences and products to spend their money on, automakers and dealers will need to prepare to get more creative in marketing the limited inventory that they have on hand."


Edmunds experts advise consumers in the market for a new car to start shopping sooner rather than later, as they anticipate the chipset shortage is likely to affect pricing and inventory through at least the second half of 2021.


"Americans looking forward to their newfound freedom this summer in the form of a road-trip vehicle should be doing their research now," said Ivan Drury, Edmunds' senior manager of insights. "The summer sales that consumers can typically look forward to might not look the same this year, and even with stimulus checks on the way, the only relief that price-sensitive car shoppers might find might be in lower interest rates and the increased value of their trade-in."


Source: Edmunds


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